Lantheus Holdings, Inc. Reports 2015 Second Quarter Financial Results

NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Aug. 4, 2015--
Lantheus Holdings, Inc. (the “Company”) (NASDAQ: LNTH), parent company
of Lantheus Medical Imaging, Inc. (“LMI”), a global leader in
developing, manufacturing, selling and distributing innovative
diagnostic imaging agents and products, today reported financial results
for the first time since its initial public offering on June 25, 2015.

Worldwide revenue for the second quarter of 2015 totaled $73.3 million,
representing a decrease of 3% as-reported and 1% on a constant-currency
basis over $75.6 million reported for the second quarter of 2014. Second
quarter revenue results reflect the continued strong performance of DEFINITY®
along with the anticipated effect of customer-specific changes within
the Company’s nuclear medicine portfolio.

The Company’s second quarter 2015 GAAP net loss totaled $24.4 million or
$(1.29) per diluted share, compared to a net loss of $1.6 million or
$(0.09) per diluted share in the second quarter of 2014. GAAP net loss
for the second quarter of 2015 included the effects of $13.0 million of
call premiums and accelerated interest obligations and $5.8 million of
non-cash write-offs of deferred financing costs, all associated with the
refinancing of the Company’s previously-outstanding senior notes, and a
$6.5 million charge for the termination of its financial sponsor
management agreement.

The Company’s second quarter 2015 net income, as adjusted for the above
items, totaled $0.9 million or $0.05 per diluted share, an improvement
of $2.5 million compared to a net loss of $1.6 million or $(0.09) per
diluted share in the second quarter of 2014. The attached financial
tables include a reconciliation of U.S. GAAP to as-adjusted results.

The Company’s second quarter 2015 Adjusted EBITDA, as defined in the
GAAP to non-GAAP reconciliation provided later in this release,
increased by 10% to $18.0 million, or 24.5% of reported revenue,
compared to $16.3 million, or 21.6% of revenue, in the second quarter of
2014.

Jeff Bailey, President and CEO commented, “As our results reflect,
during the second quarter we continued to make excellent progress
driving our business toward greater efficiency and profitability.
DEFINITY again posted a strong quarterly performance, growing 21%
annually and posting its twelfth consecutive quarter of sequential
growth. Within our nuclear medicine portfolio, the anticipated lower
sales volumes and higher average selling prices driven by a
customer-specific change earlier this year reduced our overall levels of
revenue while bringing improved balance to our customer mix and
contributing to further expansion of our profit margins. We are very
pleased with our second quarter Adjusted EBITDA growth of 10% and margin
expansion of 300 basis points, which reflect our continued progress
toward strengthening and improving our operating model.”

Mr. Bailey continued, “Additionally, as a result of our recent initial
public offering and the concurrent refinancing of our senior notes, we
now benefit from reduced total leverage and considerably lower borrowing
costs. Going forward, we expect to benefit from approximately $13.5
million of annual cash interest savings, which will significantly
improve our free cash flow profile and create additional capacity for
further deleveraging and investment. In summary, we are very
enthusiastic about our progress during the first half of the year and
will continue to focus on executing our key strategic initiatives for
this year and beyond.”

Outlook

The Company anticipates worldwide revenue for full-year 2015 of
approximately $293 million to $297 million, representing a constant
currency change over last year of (1)% to 1%. This range assumes a
negative full-year impact from currency of approximately $6 million, or
2%, compared to 2014.

The Company anticipates full-year 2015 Adjusted EBITDA, as described in
the GAAP to non-GAAP reconciliation provided later in this release, of
$72 million to $75 million, and 24% to 25% of reported revenue.

The Company’s Adjusted EBITDA target excludes the effect of possible
future acquisitions, other material unanticipated future business
developments and the adjustments of earnings as-reported to as-adjusted
that are set forth in the GAAP to non-GAAP reconciliations provided
later in this release.

The Company’s guidance for worldwide revenue and Adjusted EBITDA are
forward-looking statements. They are subject to various risks and
uncertainties that could cause the Company’s actual results to differ
materially from the anticipated targets. The anticipated targets are not
predictions of the Company’s actual performance. See the cautionary
information about forward-looking statements in the “Safe-Harbor
Statement” section of this press release.

Internet Posting of Information

The Company routinely posts information that may be important to
investors in the “Investor Relations” section of its website at www.lantheus.com.
The Company encourages investors and potential investors to consult its
website regularly for important information about the Company.

Conference Call and Webcast

As previously announced, the Company will host a conference call
starting at 4:30 p.m. (Eastern Time) today. To access the live
conference call via telephone, please dial 1-866-498-8390 (U.S. callers)
or 1-678-509-7599 (international callers) and provide passcode 91877950.
A live audio webcast of the call also will be available on the homepage
of the Company’s website at www.lantheus.com.

A replay of the telephone conference call and audio webcast will be
available from approximately 8:30 p.m. ET today through midnight on
August 18, 2015. To access a replay of the conference call, dial
1-855-859-2056 (U.S. callers) or 1-404-537-3406 (international callers),
and provide passcode 91877950. A replay of this conference call will
also be available in the Investor Relations section of our website
located at www.lantheus.com.

The conference call may include a discussion of non-GAAP financial
measures. Reference is made to the most directly comparable GAAP
financial measures, the reconciliation of the differences between the
two financial measures, and the other information included in this press
release, our Form 8-K filed with the SEC today, or otherwise available
in the Investor Relations section of our website located at www.lantheus.com.

The conference call may include forward-looking statements. See the
cautionary information about forward-looking statements in the
safe-harbor section of this press release.

About Lantheus Holdings, Inc. and Lantheus Medical Imaging, Inc.

Lantheus Holdings, Inc. is the parent company of Lantheus Medical
Imaging, Inc. (“LMI”), which is a global leader in developing,
manufacturing, selling and distributing innovative diagnostic imaging
agents and products. LMI provides a broad portfolio of products, which
are primarily used for the diagnosis of cardiovascular diseases. LMI’s
key products include the echocardiography contrast agent DEFINITY®
Vial for (Perflutren Lipid Microsphere) Injectable Suspension; TechneLite®
(Technetium Tc99m Generator), a technetium-based generator that provides
the essential medical isotope used in nuclear medicine procedures; and
Xenon (Xenon Xe 133 Gas), an inhaled radiopharmaceutical imaging agent
used to evaluate pulmonary function and for imaging the lungs.

LMI has more than 500 employees worldwide with headquarters in North
Billerica, Massachusetts, and offices in Puerto Rico, Canada and
Australia. For more information, visit www.lantheus.com.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, such as net sales
excluding the impact of foreign currency; operating income, as adjusted;
net income, as adjusted; Adjusted EBITDA; net income, as adjusted, per
diluted share; Adjusted EBITDA per diluted share; and free cash flow.
The Company’s management believes that the presentation of these
measures provides useful information to investors. These measures may
assist investors in evaluating the Company’s operations, period over
period. The measures may exclude such items which may be highly
variable, difficult to predict and of a size that could have substantial
impact on the Company’s reported results of operations for a period.
Management uses these and other non-GAAP measures internally for
evaluation of the performance of the business, including the allocation
of resources and the evaluation of results relative to employee
performance compensation targets. Investors should consider these
non-GAAP measures only as a supplement to, not as a substitute for or as
superior to, measures of financial performance prepared in accordance
with GAAP.

Safe Harbor for Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” as defined
under U.S. federal securities laws, including statements about our 2015
outlook. These statements reflect management’s current knowledge,
assumptions, beliefs, estimates and expectations and express
management’s current view of future performance, results and trends.Forward-looking
statements may be identified by their use of terms such as anticipate,
believe, confident, could, estimate, expect, intend, may, plan, predict,
project, target, will and other similar terms.Such
forward-looking statements are subject to risks and uncertainties that
could cause actual results to materially differ from those described in
the forward-looking statements.Readers are cautioned not to
place undue reliance on the forward-looking statements contained herein,
which speak only as of the date hereof. The Company undertakes no
obligation to publicly update any forward-looking statement, whether as
a result of new information, future developments or otherwise, except as
may be required by law.Risks and uncertainties that could cause
our actual results to materially differ from those described in the
forward-looking statements are discussed in our filings with the
Securities and Exchange Commission (including those described in the
Risk Factors section of our prospectus dated June 24, 2015 and filed
with the SEC on June 26, 2015, and as may be further set forth or
supplemented in our Annual Reports on Form 10-K and our Quarterly
Reports on Form 10-Q).

Lantheus Holdings, Inc. and subsidiaries

Condensed Consolidated Statements of Operations

(dollars in thousands, except share data—unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Revenues

$

73,314

$

75,613

$

148,137

$

148,949

Cost of goods sold

40,647

44,554

79,701

87,829

Gross profit

32,667

31,059

68,436

61,120

Operating expenses

Sales and marketing expenses

9,229

9,402

18,301

18,900

General and administrative expenses

15,444

8,990

24,567

17,842

Research and development expenses

2,638

2,687

8,834

5,909

Total operating expenses

27,311

21,079

51,702

42,651

Operating income

5,356

9,980

16,734

18,469

Interest expense, net

(13,876)

(10,567)

(24,499)

(21,119)

Loss on extinguishment of debt

(15,528)

—

(15,528)

—

Other income (expense), net

800

(175)

417

(589)

Loss before income taxes

(23,248)

(762)

(22,876)

(3,239)

Provision (benefit) for income taxes

1,175

874

1,172

(318)

Net loss

$

(24,423)

$

(1,636)

$

(24,048)

$

(2,921)

Net loss per common share

Basic and diluted

$

(1.29)

$

(0.09)

$

(1.30)

$

(0.16)

Common shares

Basic and diluted

18,898,003

18,080,944

18,489,451

18,080,256

Lantheus Holdings, Inc. and subsidiaries

Consolidated Revenue Analysis

(dollars in thousands—unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

% change

2015

2014

% change

U.S.

DEFINITY

27,828

23,019

20.9%

53,010

45,003

17.8%

TechneLite

14,637

20,624

(29.0)%

32,810

40,723

(19.4)%

Xenon

12,038

8,899

35.3%

25,224

18,605

35.6%

Other

3,875

6,026

(35.7)%

8,001

11,048

(27.6)%

Total U.S.

$

58,378

$

58,568

(0.3)%

$

119,045

$

115,379

3.2%

International

DEFINITY

600

497

20.7%

1,084

871

24.5%

TechneLite

2,725

2,901

(6.1)%

5,411

5,843

(7.4)%

Xenon

10

—

100.0%

19

4

375.0%

Other

11,601

13,647

(15.0)%

22,578

26,852

(15.9)%

Total International

$

14,936

$

17,045

(12.4)%

$

29,092

$

33,570

(13.3)%

Worldwide

DEFINITY

28,428

23,516

20.9%

54,094

45,874

17.9%

TechneLite

17,362

23,525

(26.2)%

38,221

46,566

(17.9)%

Xenon

12,048

8,899

35.4%

25,243

18,609

35.6%

Other

15,476

19,673

(21.3)%

30,579

37,900

(19.3)%

Total Revenues

$

73,314

$

75,613

(3.0)%

$

148,137

$

148,949

(0.5)%

Lantheus Holdings, Inc. and subsidiaries

Supplemental Revenue Information

(unaudited)

June 30, 2015 Quarter to Date Sales Growth/(Decline)

Domestic AsReported

Int’l ConstantCurrency

Int’l AsReported

Total ConstantCurrency

Total AsReported

Products

DEFINITY

21%

37%

21%

21%

21%

TechneLite

(29)%

3%

(6)%

(25)%

(26)%

Xenon

35%

100%

100%

35%

35%

Other

(36)%

(6)%

(15)%

(15)%

(21)%

Total Revenues

0%

(3)%

(12)%

(1)%

(3)%

June 30, 2015 Year to Date Sales Growth/(Decline)

Domestic AsReported

Int’l ConstantCurrency

Int’l AsReported

Total ConstantCurrency

Total AsReported

Products

DEFINITY

18%

41%

24%

18%

18%

TechneLite

(19)%

2%

(7)%

(17)%

(18)%

Xenon

36%

425%

375%

36%

36%

Other

(28)%

(8)%

(16)%

(13)%

19%

Total Revenues

3%

(5)%

(13)%

1%

(1)%

Lantheus Holdings, Inc. and subsidiaries

Reconciliation of Revenues to Revenues Excluding the Impact of
Foreign Currency